Spark New Zealand Limited · NZX:SPK
Spark New Zealand — Investor Presentation (April 2017)
16 slides from Spark New Zealand's investor presentation, Apr 19, 2017
Slide 1: Introducing the Converged Communications Network
INTRODUCING THE CONVERGED COMMUNICATIONS NETWORK Presentation to Investors and Stakeholders – 19 April 2017
Slide 2: Today We Will Discuss
TODAY WE WILL DISCUSS u PSTN and current challenges u Preview our new IP Voice network – the Converged Communications Network u What it will mean for our customers u The approach we will be adopting for the change over the next few years Introducing the Converged Communications Network April 2017 2
Slide 3: The PSTN – Our Legacy Voice Network
THE PSTN – OUR LEGACY VOICE NETWORK A complex, platform-heavy Public Switched Telephone Network controlled by the “Intelligent Network” core The Intelligent Network: The PSTN: u 2 core nodes – u 482 exchanges Auckland and (449 Chorus, Palmerston North 33 Spark) u The core routing u 4553 frames techn
Slide 4: The PSTN Is End of Life
THE PSTN IS END OF LIFE Both the PSTN and the Intelligent Network core are at the end of their lifecycle, which poses significant challenges The ability to source COMPONENTS are SECOND HAND The availability of no longer PARTS is practically LEGACY SKILLS manufactured exhausted is declining Introduci
Slide 5: Customers Are Already "Voting" With Their Devices
CUSTOMERS ARE ALREADY “VOTING” WITH THEIR DEVICES Copper PSTN calls are less than half of the total voice traffic on the Spark network already Voice minutes on mobile, Fibre, and Wireless Broadband overtook PSTN in early 2016 2013 2014 2015 2016 2017 Introducing the Converged Communications Network
Slide 6: Delivering the Future of Voice
DELIVERING THE FUTURE OF VOICE The Converged Communications Network (CCN) replaces the legacy PSTN, aligning with global trends, and preparing for the explosive proliferation of data-based services WIRELESS Delivering new services: APP BASED CALLING u Voice application (data) FIBRE u Video conferenc
Slide 7: The Converged Communications Network
THE CONVERGED COMMUNICATIONS NETWORK u Three redundant core network nodes, geographically spread, to keep our communications working during a crisis AGILE AND RESILIENT u Virtualised platform to scale more quickly and efficiently into the future u Routing traffic through next-generation optical and
Slide 8: The Plan to Decommission the PSTN
THE PLAN TO DECOMMISSION THE PSTN We’ve been talking about it for over a decade, but we’ve started a five year programme of work RELEASE RELEASE RELEASE Build a resilient Scale and migrate off Additional resilience ONE network foundation TWO PSTN THREE and future services 2017 2018 2019 2020 u Build
Slide 9: Getting Prepared
GETTING PREPARED We have built the first two new cores and testing begins soon. We’ve been practicing our migration workflow by consolidating smaller exchanges around New Zealand. So far: u Nightcaps, Southland – September 2016 Completing shortly: u Runanga, West Coast – October 2016 u Little River,
Slide 10: Example Exchange:
EXAMPLE EXCHANGE: Before: After: We will need to remove and scrap over 1,300 tons of equipment in total, equivalent to 1300 small cars Introducing the Converged Communications Network April 2017 10
Slide 11: What the CCN Will Mean for Customers
WHAT THE CCN WILL MEAN FOR CUSTOMERS The CCN will deliver new capabilities and services, with minimal disruption to customers u A wider range of new features will be available for home and business customers (e.g. Voice over WiFi, Voice over LTE, video conferencing, collaboration, etc) u Technical n
Slide 12: Compatibility With Customer Devices
COMPATIBILITY WITH CUSTOMER DEVICES On the whole, most customer devices being used today will be compatible with the CCN, but there maybe some exceptions. u Low-speed dial up services such as some medical and house alarms, old SKY decoders, old EFTPOS terminals, and old PABX systems may not be compa
Slide 13: Customer Impact During Migration
CUSTOMER IMPACT DURING MIGRATION We are working to minimise disruption and inconvenience to customers during and following the phased migration of individual PSTN exchanges u Small outage of only a few minutes during the day at off-peak times for residential calling (between 9am and 2pm). u Checking
Slide 14: In an Emergency
IN AN EMERGENCY There are two legacy elements of the PSTN today that are considerations during emergency situations in the future: u Phone line powered devices (e.g. traditional corded landlines): • Fibre and Wireless Broadband are not powered through the phones line. This is the current situation t
Slide 15: Our Evolving Approach During Emergencies
OUR EVOLVING APPROACH DURING EMERGENCIES Kaikoura and Christchurch have taught us a lot about shifting usage and requirements during an emergency u There is a greater reliance on mobile during crises now, so we are taking steps to improve mobile resilience. u We are now advising people that to stay
Slide 16: Q&A
Q&A
Spark New Zealand — Investor Presentation (April 2017) on 6ix